The Five Dumbest Things on Wall Street This Week

Blockbusted What Icahn they do?

5. Film at 11

Blockbuster (BBI) CEO John Antioco really showed Carl Icahn a thing or two the other day.

Icahn is the billionaire financier who is the video-store chain's largest shareholder, with a 10% stake. He has generally characterized Antioco as an overpaid, free-spending bungler. Icahn says he believes Blockbuster should be sold and is mounting a proxy fight to put himself and two others on the company's board. He has said he will "attempt to take control of the board of directors in the 2006 annual meeting."

On Wednesday, Blockbuster fired back. Blockbuster said that if shareholders elect Icahn and his associates to the board, Antioco will quit as chairman. And don't think there won't be consequences, either.

"The company notes that removal of Mr. Antioco from the board chairmanship would constitute 'good reason' under Mr. Antioco's employment contract and could entitle him to receive the benefits provided in the contract including severance and accelerated vesting of equity awards," Blockbuster said in its release.

Yes, that's how you prove your CEO isn't overpaid or free-spending. You threaten to trigger his golden parachute.

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